Meta Reality Labs Layoffs: The US tech giant carried out large-scale layoffs in its Reality Labs division at the beginning of 2026, with more than 1,000 employees losing their jobs. This decision is not being seen as just a routine corporate job cut, but is also raising questions about the long-term strategy under which the company once changed its name from Facebook to Meta.
Reality Labs is the same unit that was working on emerging technologies like Virtual Reality (VR), Metaverse, and Extended Reality (XR). This was the division where Meta had invested billions of dollars with the future in mind.
Big focus on the Metaverse, but ground reality is different
If we go back a few years, Meta co-founder and CEO Mark Zuckerberg had described the Metaverse as the next big step for the internet. With this thinking, the company not only made heavy investments, but also rebranded itself as “Meta,” moving beyond the identity of Facebook, Instagram, and WhatsApp.
The recent layoffs in Reality Labs — said to be more than around 10% of the total staff — clearly indicate that the company’s confidence in the Metaverse is no longer what it once was. The decision has affected teams working on VR headsets, Metaverse platforms like Horizon Worlds, and immersive gaming studios.
Key decision just before the strategic meeting
The layoffs began on Wednesday morning, which was confirmed through an internal company message. Meta’s Chief Technology Officer Andrew Bosworth told employees that this step was taken just before the company’s most important strategic meeting of the year, where the direction for the coming months is to be decided.
The company said that due to continuously rising costs in Reality Labs and limited user adoption, this step had become necessary. Meta now wants to focus its resources on products and services that are used at a large scale and can generate revenue in a relatively shorter time.
Flood of Open to Work posts on LinkedIn
Immediately after the layoffs, ‘Open to Work’ posts by former Meta employees began appearing rapidly on social media. A large number of experienced tech professionals updated their profiles, clearly showing that thousands of people have suddenly entered the job market.
This trend is not limited to Meta alone, but points to a changing environment across the global tech sector, where companies are now betting on technologies that show results quickly and have direct practical use for business, instead of long-running experiments.
Billions spent, but limited users
Over the past few years, Reality Labs made large-scale investments in Metaverse and XR technology, but these products did not receive the kind of response from general users that was expected. Meta’s VR headsets and virtual worlds still appear to be limited to a narrow audience.
Because of this, Meta has faced continuous financial losses, and the company now appears forced to rethink its priorities.
Fast shift toward AI and Wearables
Meta’s focus has now clearly shifted toward AI and Wearables. The company is placing more emphasis on AI-supported devices like Ray-Ban Smart Glasses, whose demand is steadily increasing. Due to their compact design and ease of everyday use, these smart glasses are becoming popular among users at a fast pace. The recently launched smart glasses with displays have gone out of stock multiple times in the US.
Apart from this, Meta is also working on new glasses called ‘Orion’. These will look like regular eyewear, but are said to come with advanced mixed reality features. It is believed that their concept could be somewhat similar to Apple’s high-end headsets.
Utkarsh works as a Sub-Editor at 1Tak News. Technology and gadgets are his main beats, and he also tracks automobiles. A graduate of Mahatma Gandhi Kashi Vidyapeeth, he began his journalism career in 2023 and has built experience across digital media platforms like 1Tak. Besides technology, he also has considerable experience covering national affairs, politics, research, and international news.
